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QUESTION: Governor Romney, you have stated that if you're elected president, you would plan to reduce the tax rates for all the tax brackets and that you would work with the Congress to eliminate some deductions in order to make up for the loss in revenue.

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Concerning the — these various deductions, the mortgage deductions, the charitable deductions, the child tax credit and also the — oh, what's that other credit? I forgot.

OBAMA: You're doing great.

QUESTION: Oh, I remember.

The education credits, which are important to me, because I have children in college. What would be your position on those things, which are important to the middle class?

ROMNEY: Thank you very much. And let me tell you, you're absolutely right about part of that, which is I want to bring the rates down, I want to simplify the tax code, and I want to get middle- income taxpayers to have lower taxes.

And the reason I want middle-income taxpayers to have lower taxes is because middle-income taxpayers have been buried over the past four years. You've seen, as middle-income people in this country, incomes go down $4,300 a family, even as gasoline prices have gone up $2,000. Health insurance premiums, up $2,500. Food prices up. Utility prices up.

The middle-income families in America have been crushed over the last four years. So I want to get some relief to middle-income families. That's part — that's part one.

Now, how about deductions? 'Cause I'm going to bring rates down across the board for everybody, but I'm going to limit deductions and exemptions and credits, particularly for people at the high end, because I am not going to have people at the high end pay less than they're paying now.

The top 5 percent of taxpayers will continue to pay 60 percent of the income tax the nation collects. So that'll stay the same.

Middle-income people are going to get a tax break.

And so, in terms of bringing down deductions, one way of doing that would be say everybody gets — I'll pick a number — $25,000 of deductions and credits, and you can decide which ones to use. Your home mortgage interest deduction, charity, child tax credit, and so forth, you can use those as part of filling that bucket, if you will, of deductions.

But your rate comes down and the burden also comes down on you for one more reason, and that is every middle-income taxpayer no longer will pay any tax on interest, dividends or capital gains. No tax on your savings. That makes life a lot easier.

If you're getting interest from a bank, if you're getting a statement from a mutual fund or any other kind of investment you have, you don't have to worry about filing taxes on that, because there'll be no taxes for anybody making $200,000.00 per year and less, on your interest, dividends and capital gains. Why am I lowering taxes on the middle-class? Because under the last four years, they've been buried. And I want to help people in the middle-class.

And I will not — I will not under any circumstances, reduce the share that's being paid by the highest income taxpayers. And I will not, under any circumstances increase taxes on the middle-class. The president's spending, the president's borrowing will cost this nation to have to raise taxes on the American people. Not just at the high end. A recent study has shown the people in the middle-class will see $4,000.00 per year in higher taxes as a result of the spending and borrowing of this administration.

I will not let that happen. I want to get us on track to a balanced budget, and I'm going to reduce the tax burden on middle income families. And what's that going to do? It's going to help those families, and it's going to create incentives to start growing jobs again in this country.

CROWLEY: Thanks, Governor.

OBAMA: My philosophy on taxes has been simple. And that is, I want to give middle-class families and folks who are striving to get into the middle-class some relief. Because they have been hit hard over the last decade. Over the last 15, over the last 20 years.

So four years ago I stood on a stage just like this one. Actually it was a town hall, and I said I would cut taxes for middle- class families, and that's what I've done, by $3,600.00. I said I would cut taxes for small businesses, who are the drivers and engines of growth. And we've cut them 18 times. And I want to continue those tax cuts for middle-class families, and for small business.

But what I've also said is, if we're serious about reducing the deficit, if this is genuinely a moral obligation to the next generation, then in addition to some tough spending cuts, we've also got to make sure that the wealthy do a little bit more.

So what I've said is, your first $250,000.00 worth of income, no change. And that means 98 percent of American families, 97 percent of small businesses, they will not see a tax increase. I'm ready to sign that bill right now. The only reason it's not happening is because Governor Romney's allies in Congress have held the 98 percent hostage because they want tax breaks for the top 2 percent.

But what I've also says is for above $250,000, we can go back to the tax rates we had when Bill Clinton was president. We created 23 million new jobs. That's part of what took us from deficits to surplus. It will be good for our economy and it will be good for job creation.

Now, Governor Romney has a different philosophy. He was on 60 Minutes just two weeks ago and he was asked: Is it fair for somebody like you, making $20 million a year, to pay a lower tax rate than a nurse or a bus driver, somebody making $50,000 year? And he said, "Yes, I think that's fair." Not only that, he said, "I think that's what grows the economy."

Well, I fundamentally disagree with that. I think what grows the economy is when you get that tax credit that we put in place for your kids going to college. I think that grows the economy. I think what grows the economy is when we make sure small businesses are getting a tax credit for hiring veterans who fought for our country. That grows our economy.

So we just have a different theory. And when Governor Romney stands here, after a year of campaigning, when during a Republican primary he stood on stage and said "I'm going to give tax cuts" — he didn't say tax rate cuts, he said "tax cuts to everybody," including the top 1 percent, you should believe him because that's been his history.

And that's exactly the kind of top-down economics that is not going to work if we want a strong middle class and an economy that's striving for everybody.

CROWLEY: Governor Romney, I'm sure you've got a reply there.

(LAUGHTER) ROMNEY: You're absolutely right.

You heard what I said about my tax plan. The top 5 percent will continue to pay 60 percent, as they do today. I'm not looking to cut taxes for wealthy people. I am looking to cut taxes for middle-income people.

And why do I want to bring rates down, and at the same time lower exemptions and deductions, particularly for people at the high end? Because if you bring rates down, it makes it easier for small business to keep more of their capital and hire people.

And for me, this is about jobs. I want to get America's economy going again. Fifty-four percent of America's workers work in businesses that are taxed as individuals. So when you bring those rates down, those small businesses are able to keep more money and hire more people.

For me, I look at what's happened in the last four years and say this has been a disappointment. We can do better than this. We don't have to settle for, how many months, 43 months with unemployment above 8 percent, 23 million Americans struggling to find a good job right now.

There are 3.5 million more women living in poverty today than when the president took office.

We don't have to live like this. We can get this economy going again. My five-point plan does it. Energy independence for North America in five years. Opening up more trade, particularly in Latin America. Cracking down on China when they cheat. Getting us to a balanced budget. Fixing our training programs for our workers. And finally, championing small business.

I want to make small businesses grow and thrive. I know how to make that happen. I spent my life in the private sector. I know why jobs come and why they go. And they're going now because of the policies of this administration.

CROWLEY: Governor, let me ask the president something about what you just said.

The governor says that he is not going to allow the top 5 percent, believe is what he said, to have a tax cut, that it will all even out, that what he wants to do is give that tax cut to the middle class. Settled?

OBAMA: No, it's not settled.

Look, the cost of lowering rates for everybody across the board, 20 percent. Along with what he also wants to do in terms of eliminating the estate tax, along what he wants to do in terms of corporates, changes in the tax code, it costs about $5 trillion.

Governor Romney then also wants to spend $2 trillion on additional military programs even though the military's not asking for them. That's $7 trillion.

He also wants to continue the Bush tax cuts for the wealthiest Americans. That's another trillion dollars — that's $8 trillion.

Now, what he says is he's going to make sure that this doesn't add to the deficit and he's going to cut middleclass taxes.

But when he's asked, how are you going to do it, which deductions, which loopholes are you going to close? He can't tell you.

The — the fact that he only has to pay 14 percent on his taxes when a lot of you are paying much higher. He's already taken that off the board, capital gains are going to continue to be at a low rate so we — we're not going to get money that way.

We haven't heard from the governor any specifics beyond Big Bird and eliminating funding for Planned Parenthood in terms of how he pays for that.

Now, Governor Romney was a very successful investor. If somebody came to you, Governor, with a plan that said, here, I want to spend $7 or $8 trillion, and then we're going to pay for it, but we can't tell you until maybe after the election how we're going to do it, you wouldn't take such a sketchy deal and neither should you, the American people, because the math doesn't add up.

And — and what's at stake here is one of two things, either Candy — this blows up the deficit because keep in mind, this is just to pay for the additional spending that he's talking about, $7 trillion - $8 trillion before we even get to the deficit we already have. Or, alternatively, it's got to be paid for, not only by closing deductions for wealthy individuals, that — that will pay for about 4 percent reduction in tax rates.

You're going to be paying for it. You're going to lose some deductions, and you can't buy the sales pitch. Nobody who's looked at it that's serious, actually believes it adds up.

CROWLEY: Mr. President, let me get — let me get the governor in on this. And Governor, let's — before we get into a...

ROMNEY: I — I...

CROWLEY: ...vast array of who says — what study says what, if it shouldn't add up. If somehow when you get in there, there isn't enough tax revenue coming in. If somehow the numbers don't add up, would you be willing to look again at a 20 percent...

ROMNEY: Well of course they add up. I — I was — I was someone who ran businesses for 25 years, and balanced the budget. I ran the Olympics and balanced the budget. I ran the — the state of Massachusetts as a governor, to the extent any governor does, and balanced the budget all four years. When we're talking about math that doesn't add up, how about $4 trillion of deficits over the last four years, $5 trillion? That's math that doesn't add up. We have — we have a president talking about someone's plan in a way that's completely foreign to what my real plan is.

ROMNEY: And then we have his own record, which is we have four consecutive years where he said when he was running for office, he would cut the deficit in half. Instead he's doubled it. We've gone from $10 trillion of national debt, to $16 trillion of national debt. If the president were reelected, we'd go to almost $20 trillion of national debt. This puts us on a road to Greece. I know what it takes to balance budgets. I've done it my entire life. So for instance when he says, "Yours is a $5 trillion cut." Well, no it's not. Because I'm offsetting some of the reductions with holding down some of the deductions.

And...

CROWLEY: Governor, I've gotta — gotta — actually, I need to have you both (inaudible).

(CROSSTALK)

CROWLEY: I understand the stakes here. I understand both of you. But I — I will get run out of town if I don't...

(CROSSTALK)

ROMNEY: And I just described — I just described to you, Mr. President — I just described to you precisely how I'd do it which is with a single number that people can put — and they can put they're — they're deductions and credits...

(CROSSTALK)

CROWLEY: Mr. President, we're keeping track, I promise you. And Mr. President, the next question is for you, so stay standing.

OBAMA: Great. Looking forward to it.

And it's Katherine Fenton, who has a question for you.

QUESTION: In what new ways to you intend to rectify the inequalities in the workplace, specifically regarding females making only 72 percent of what their male counterparts earn?

OBAMA: Well, Katherine, that's a great question. And, you know, I was raised by a single mom who had to put herself through school while looking after two kids. And she worked hard every day and made a lot of sacrifices to make sure we got everything we needed. My grandmother, she started off as a secretary in a bank. She never got a college education, even though she was smart as a whip. And she worked her way up to become a vice president of a local bank, but she hit the glass ceiling. She trained people who would end up becoming her bosses during the course of her career.

She didn't complain. That's not what you did in that generation. And this is one of the reasons why one of the first — the first bill I signed was something called the Lily Ledbetter bill. And it's named after this amazing woman who had been doing the same job as a man for years, found out that she was getting paid less, and the Supreme Court said that she couldn't bring suit because she should have found about it earlier, whereas she had no way of finding out about it. So we fixed that. And that's an example of the kind of advocacy that we need, because women are increasingly the breadwinners in the family. This is not just a women's issue, this is a family issue, this is a middle-class issue, and that's why we've got to fight for it.

Here's a suggestion for either candidate that makes it into office. Want to talk taxes and paying fair shares? Eliminate Federal Income taxes, State income taxes(in the 45 states that do have them) and add it all into sales tax. Make the classes live within their means. A middle class family will buy their middle class car and pay their 33% sales tax from their income on their $20k-30k car and the rich will pay their same % on their $100k-200k cars. Middle class will pay on thei 10k bass boats, rich will pay on their 1M dollar yachts. And down the line.

Also what about these people with food stamps? I have stood in line with my stack of 88 cent TV dinners and $1.25 pizzas that will be my lunch and dinner because I make to much to qualify, or decide I can live off of these even if I would qualify, behind someone loading up a full shopping cart of name brand products, top grade meats, weighing about 300+lbs and talking how they will be back for their next cart later. You charge the sales taxes on those as well and make them budget what they buy, or don't give as much. Keeping people alive is one thing. Keeping them living in the lap of luxury as far as feeding them goes is another. Has made me wish a few times I was collecting food stamps...why work so hard to live off of scraps when others have it made.

Education and jobs. Here is one from personal experience that I will relate. Lower taxes for businesses creates/maintains jobs. I went to college. I have a degree in one of the top 10 paying jobs in this country. IT. Graduated with honors. Got my job during the Bush administration. Had it until Obama got in office and allowed the Bush Tax Cuts to expire. My company laid off over 400 people from administrator to janitors. I happened to be one of those laid off. It wasn't just my company. The market became flooded with out of work IT people that I have not been able to get a job in since because there are those with longer experience still looking for work. So I am in a long line, and the piece of paper I got from college is almost worthless, especially in an ever changing field where it becomes outdated if you are not in your field for a certain duration. During this debate Obama mentioned the jobs not coming back because can't compete with the wages and wants more "Higher paying" jobs and "more education". Say you live in an average d city. They have a hospital. They may hire 100 doctors and 400 nurses for your "higher paying" jobs that require an education. Great. You have a town of about 40k-50k people with 500 people working high paying jobs. And you paid for 10k of those people to go to college to become doctors. Now you have 9,500 people not working with degrees they can't afford and can't use. Giving more people education to lead in sciences is not going to create jobs. If you get 1 in every 100,000 people smart enough to invent something, its going to be the middle class manufacturers and general laborers that are going to mass produce this widget for you. You aren't going to load the company with nonworking doctors. Because like me that has a degree in the higher level of pay, companies don't want to hire you because they see that you have a degree in education having absolutely nothing to do with what you are applying for, and they are afraid you are just there temporarily until you field opens up again. I was jumping between unemployment and temp jobs for over 2 years for this reason mainly. You know how I got a job....put NOTHING in education past high school. Now I am one of the many UNDERemployed in the US. The more people you get back to work in ANY job, low to high, and they stop using taxes and start paying taxes...that is a number one way that getting jobs here in the US at any level is better than just concentrating on high paying jobs. There are only so many positions needed for those higher jobs...you do need blue collar workers. As a saying goes I heard once....The Higher, The Fewer" If the government shoots for everybody to be at the top, there will be no foundation and it all collapses. If I don't have your average Joe requiring me to fix their computer issues because they already know, I don't have a job. If the market becomes flooded with independent contractors because no one will hire them, the competing costs will keep getting lower and lower and lower, so that those "high paying jobs" aren't so very high paying anymore and not worth getting the education for them.

The believable lie's this Clown President like's to spew as the truth .

The party of Liar's !

As a good American I really must protest in the extreme prejudice against any and all liar's holding office . The way I see it ? Lie to the American people while simultaneously betraying the American people to the jurisdiction of the United Nation's . Is Treason !

As to Michele Obama ! Please quit posting her evil smileing face on the Nett . It's scaring the children .

I can not wait for the White House Staff to come forward and tell of her Demonic rant's and rage's, of Michele Obama . You all realize this will come out eventually ? The sooner the better .

Now Ive been telling you all for sometime of the back lash that will most assuredly follow this administration.

You Dim's best hope the fix is in where the fiscal cliff begin's ! Because history say's the people will Revolt if and when the economy collapse's, and the blame will fall upon the Obama administration.

Alway's the reference to the Bush administration being at fault on the economy . I believe Obama has betrayed this Country to it's Enemie's . I fully believe that he will leave office, having fixed the economy to fail under Mitt Rommney's Administration.

Thus the Dim party betray's there true intent in there accussation's against Bush being at fault for a failing economy before Obama came to office. The exact Psychiatric term for telling a lie that is true about yourself and your intent torward's other's while lie- ing about other's is ???

Then there's Feinstien, Reid , and Pelosi ? Enough said about these whacko's !

It's not paranoia if the threat is real ! Pelosi for what ever reason seem's to believe the threat of Civil unrest in America is real . Here you have the implied threat of a Liar who know's the truth of Obamas intent .

5 comment's ? Politico I think your circulation is in trouble ! Soon your Goverment funding will be cut off . Then you will reap what you have sewn . This being unemployment, and homelessness.

Im not sure ? But does the Weather Underground finnancially support it's member's after a failed communist insurgency ? Meaning do they even offer a 401K plan ? Or extended Commie benefitt's of some sort or type unknown to the American People ?

Ohh it may be a Sin ? But I am laughing my backside off . So please tell me again . Why is Bill Ayer's the Bomber allowed to walk the street's of America ?

In a time when domestic terrorism is one of the biggest threat's to American society ? Call me delusional if you like ? But I think it's time Mr. Ayer's was investigated again . In fact I think ole Bill Ayer's / Obamas back side buddy in college is a really a twisted, violent sore loser .

This make's the man a viable threat to the American people, of what he has alway's been . More so now than ever ! Legal step's should be takin to insure that this Man is not allowed to conspire to commit anymore mayhem or violence upon the American people .

As to the rest of us . The Good American's and Patriot's ! Realize when Obama loses that the Dim party will merely shift to plan B and continue there Communist Insurgency into America .

They intention is to collapse the economy, and cause as much stress and strife in American society as they can under Rommney's Administration . Here they will pander there foolish plan's to create civil unrest, while making there ploy to involve the blue helmet's of the United Nation's in our Country's affair's .

these 3 words...............................were the quote of the entire debate.

Obie saw the delicious chance to set up an over eager mittens who thought he had some kind of gotcha moment on Obie.

shrewd calm Obie then sitting there with a cool ear to ear grin saw the opening and indicated he would feed mittens as much rope as he wanted to frickin hang himself.

he walked right into Obies carefully set trap.

mittens never knew what hit him after crowley exposed the fact that mittens pathetic assertions were completely false in front of a national tv audience.

sweetest moment of the debate.

Well, I thought the moments after were the most revealing when Obama practically hopping from leg to leg and an insufferably smug look on his face like the little boy whose package was about to be opened said "get the transcript, get the transcript"and inexplicably there it was right in front of the moderator...really strange don't you think?

mittens never knew what hit him after crowley exposed the fact that mittens pathetic assertions were completely false in front of a national tv audience.

I thought she said in front of a national tv audience that she was wrong and read what she says at the time also where she tells the governor that actually what he said was right...it's in the same sequence.